Business summary
Oriental Payment Group is a mature merchant collection mechanism in Thailand that provides a range of integrated payment processing services to merchants of all sizes that are frequently visited by Chinese tourists.
The group's customer base mainly includes merchants, China UnionPay, and coupon promotion platform developers. The Group is one of the three major China UnionPay merchant billing institutions that provide payment processing services in Thailand. According to transaction value, the Group ranked first among China UnionPay merchant billing operations in Thailand, with a market share of about 24.9% in 2017. Furthermore, the group listing was a spin-off listing of China PayConnect Group (8325). The business plan between the group and the rest of the China PayPass Group was clear. It focused on different regions due to clear differences in the nature of their respective businesses.
Competitive advantage
The Group's strategically developed merchant network in Thailand can seize the continuous growth of Chinese tourists visiting Thailand
The Group has provided high-quality services, invested in advanced point-of-sale terminals and adopted competitive pricing strategies to nurture continuing relationships with major merchants and develop a mature commercial network
The Group establishes a long-term and complementary business cooperation relationship with China UnionPay
Risk Factors
If China UnionPay (the group's single supplier and one of the group's main customers) ends cooperation with the group, the group's operations and profitability may be significantly adversely affected
The group may face intense competition and price pressure from Internet A and W
The group may face competition from other China UnionPay merchant billing mechanisms
Use of proceeds
About 25.0% of smart point-of-sale terminals used to increase the group's inventory and enhance its functionality
About 15.9% is used as a billing host system for development groups
Approximately 2.30% is used to increase and expand the group's marketing activities
Approximately 4.30% is used to recruit new talents
Approximately 29.6% is used to expand the group's payment processing services to cover other payment network organizations
Approximately 12.9% was used for expansion to Cambodia
Approximately 10.0% is used as general working capital